Social equity cannabis entrepreneurs struggling to find capital for their upstart businesses can now apply for loans through a new program, the state announced Tuesday.
The Canna-Business Revolving Loan Fund, which provides licensed social equity cannabis business owners with loans, has officially launched with an initial $10 million allocation, the state Social Equity Council and Department of Economic and Community Development said.
The loans are fixed at prime plus 3%, the state said, with a 1.5% interest rate discount for applicants that enroll and complete the Social Equity Council’s accelerator program, which launched earlier this year.
The loans can be used for equipment purchases and installation, leasehold improvements or expansions, working capital and lines of credit, vehicles used for official business, technology infrastructure, loan closing costs, environmental studies or other soft costs related to new construction/renovations.
The loan program was inscribed into Connecticut’s 2021 recreational cannabis law, which authorized up to $50 million in general obligation bonds for state agencies to use for low-interest loans to social equity applicants, municipalities, or nonprofits.
